Reliance industry chairman, Mukesh Ambani is back in the league of the world’s wealthiest men. After the Reliance Jio – Facebook deal, Ambani became the richest man in Asia again and is now 17th among the world’s richest. His net worth jumped after company stock zoomed following Facebook’s investment in Jio Platforms.
Facebook invested $5.7 billion in Reliance Jio for 9.99% equity in the company. After the acquisition of WhatsApp in 2014, it is the biggest tech deal. It is also the largest FDI coming into India ever. With this, Facebook is now the largest minority shareholder in Jio, which is valued (pre-money) at $66 billion.
“The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India,” Reliance Industries stated.
Mukesh Ambani’s wealth increased by $4.7 billion
Ambani’s wealth increased by $4.7 billion on Wednesday after Reliance stock zoomed 10 percent on the BSE following the news of the Reliance Jio-Facebook deal.
Speaking of the deal in a video message, Ambani said, “All of us at Reliance are humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians. The synergy between Jio and Facebook will help realise the ‘Digital India’ Mission with its two ambitious goals — ‘Ease of Living’ and ‘Ease of Doing Business’ – for every single category of Indian people.”
Time of the deal
The deal materialized when the entire world is facing a global crisis. From petrochemical-to-telecom, all are hit by the recession. The “With the power of WhatsApp, we can enable people to connect with businesses, shop and ultimately purchase products in a seamless mobile experience,” Facebook said in a statement after the deal.
A Game Changer
Reliance-Facebook deal is a game-changer for India’s small-and-medium businesses — over 60 million of them.
David Fischer, Chief Revenue Officer, and Ajit Mohan, VP and Managing Director, India of Facebook, wrote in a joint note: “Our goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India. They account for the majority of jobs in the country, and form the heart and soul of rural and urban communities alike.”